Premier Investments (PMV)

Shares in fashion and investment group
Premier Investments
are at their lowest levels for almost three years as investors await the results of a cost reduction and margin expansion plan implemented by retail chief executive,
Mark McInnes
. Premier shares sank to $4.65 last Friday, their lowest level since May 2009. The share price has recovered some ground this week and is now trading at 13 times forecast 2012 earnings – a premium to other discretionary retailers. Premier expects earnings before interest and tax of between $80 million and $95 million this year by cutting costs, closing underperforming stores, expanding online offer and opening higher-margin stores. Consumer discretionary spending is still low, and analysts expect sales and earnings momentum to be heavily weighted to the second half. Deutsche Bank says Premier’s $300 million in cash is a backstop to the share price and potential earnings upside from acquisitions.